Established in 1921, the Mitsubishi Electric Group is a global leader in the manufacture and sales of electric and electronic equipment used in Energy and Electric Systems, Industrial Automation, Information and Communication Systems, Electronic Devices, and Home Appliances. Headquartered in Tokyo, Japan, the company has offices and facilities around the world, with a high profile presence in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. Since its inception, the Mitsubishi Electric Group seeks to improve consistently its technologies and services by emphasizing the creative and inventive aspect of its business. By doing so, the company enhances the quality of life across the globe.

Automotive equipment technology by Mitsubishi Electric is a driving force behind vehicles made by the world's major automobile manufacturers. The company has a significant global market share in alternators, ignition coils and electric power steering. It also produces numerous on-board electronic components and safety systems like anti-theft, chassis control, radar and air bag control. Environment-critical components, too, such as for hybrid electric and fuel cell-powered vehicles, are manufactured and supplied to leading carmakers throughout the world. Furthermore, Mitsubishi Electric is on the cutting-edge with satellite-based telematics technologies, creating a new dimension of in-car conveniences, such as pinpoint navigation, automatic toll collection, intelligent emergency services and entertainment. Indeed, the company helps to drive the evolution of the automobile ever forward.

Mitsubishi Electric has been operating in Thailand for decades and oversees several in-country subsidiaries. One of them is the Mitsubishi Electric Thai Auto-Parts Company (META), which has an extensive facility at the Siam Eastern Industrial Park (SEP) located in Rayong province. Siam Steel Group founded this manufacturing estate in 1992 to promote and develop the Eastern Seaboard as the core of Thailand's export-oriented economy. The SEP is an area under the Board of Investment's (BOI) Zone 3, thereby receiving the highest range of privileges from the Government of Thailand. It is also close to Bangkok and other resource centers including the seaport at Laem Chabang and Suvarnabhumi International Airport. Moreover, the SEP is abundant with natural sources of water, while also having a central waste water treatment facility and all the necessary infrastructure for industrial operations.

During an interview with Thailand Investment Review, Akitoshi Kamada, President of Mitsubishi Electric Thai Auto-Parts Company, outlined some key aspects of the corporation and highlighted some important issues and trends that the enterprise has been observing over the past year. As Mr. Kamada pointed out, due to fast-track globalization business strategies must be flexible and reviewed constantly in order for company executives to respond quickly and effectively to both opportunities and threats. The interview took place on the premises of the META factory at the Siam Eastern Industrial Park.

Over a cup of Japanese green tea, a number of questions were posed to Mr. Kamada, ranging from the basics – the identification of the company's chief products – to the strategic – the future impact of the ASEAN Economic Community upon the business operations of Mitsubishi Electric Thai Auto-Parts. His replies were insightful not only about the primary functions of META (regarding production, supply and distribution), but also about the company's overall place in the global network of both the Mitsubishi Electric and the parent corporation, Mitsubishi. Additionally, he spoke about the current challenges META confronts locally as well as globally and the attractions of living as a Japanese expat in Thailand.

Mr. Kamada has worked for the Mitsubishi Electric Group for 27 years. First assigned to work at Mitsubishi Electric Thai Auto-Parts in 2010, he held the posting of company vice president. But in October 2011, during the height of the flood crisis in Thailand, Mr. Kamada was promoted to be company president. He is a native of Sanda, a mid-sized city in Hyogo prefecture, Japan, but has an international outlook due to his numerous business travels.

To begin, Mr. Kamada explained that META manufactures exclusively components for automobiles and motorcycles. For instance, the company produces alternators, starters, electric power steering (EPS) motors and electronic control units (ECUs), Gardener Denver vacuum pumps (GDVPs), car audios and exhaust gas recirculation (EGR) and solenoid (SOL) valves. These parts are made not only for Mitsubishi Motors but also for other Japanese automotive manufacturers such as Nissan. Mr. Kamada also stated that META inaugurated its operations at the SEP on the 1st of October 1997 in the midst of the 1997-1998 East Asian Financial Crisis and Thailand's attendant economic meltdown.

Currently, META has five plants in Thailand but only a single plant (at the SEP) dedicated to the manufacture of automotive parts. META's Rayong facility employees 2,800 staff.

When queried, if Mitsubishi Electric Thai Auto-Parts has any future growth plans in Thailand, Mr. Kamada was quick to respond in the affirmative. He pointed out that META is considering the opening of new plants in certain parts of Thailand and creating a more integrated and efficient supply chain, at both the local and regional levels. The reason stems from the fact that there exists greater competition globally and there is more demand from customers, particularly auto producers that are increasing their manufacturing capacity. Furthermore, Mr. Kamada declared that META has an edge over its competitors in the industry due to the company's long-term presence in Thailand, its far-reaching supply chain (internal as well as external), its experienced executives and managers who are knowledgeable of the Thai automotive market, and a real sense of teamwork shared by all META staff.

Later Mr. Kamada was asked: How important are the incentives offered by the Board of Investment to Mitsubishi Electric Thai Auto-Parts when making business decisions? Moreover, is the Board of Investment helpful in promoting the industry's development? He proclaimed without hesitation that when compared to other countries in the Asia-Pacific region the BOI system is first-rate with plenty of incentives on offer and exhibits attentive cooperation in facilitating both investment and expansion. Mr. Kamada also asserted that the BOI does assist the auto sector in Thailand significantly and BOI's proactive approach has benefitted all enterprises associated with the industry. He continued by stating that future changes are in store for the Thai automotive sector and that they will be experienced by the industry sometime in the middle of 2013.

Indeed, according to Mr. Kamada, the Board of Investment is one reason why Mitsubishi Electric Thai Auto-Parts considers Thailand to be a good operating base, regionally as well as globally, for it serves as a reliable partner. Other reasons include the country's central geographic location on mainland Southeast Asia, the widespread availability of good infrastructure throughout Thailand, the existence of supporting industries necessary for growth, a healthy export-driven economy, and favorable Government policies/regulations.

When the discussion turned to the topic of Thai workers, Mr. Kamada provided some observations that were noteworthy. He started by saying that certain social-cultural characteristics of the Thai people are a crucial motive for Japanese companies to establish themselves in Thailand. Mr. Kamada highlights that the Thai staff at Mitsubishi Electric Thai Auto-Parts have proven to be adaptable, flexible, and team-oriented.

Yet, he commented that there is a shortage of skilled labor in Thailand. In fact, there is an industry-wide need for more workers who possess certain language and technical capabilities. The exigencies of globalization make it an imperative for auto manufacturers to put together a labor force that can compete on an international level and that can contribute to the development of the company. As an example, Mr. Kamada points out that Japanese and English are the two principal languages used by META. Even though Thai may be used for conversational purposes on the factory floor or in the warehouse, it does not replace the importance of either Japanese or English.

Mr. Kamada did mention that Mitsubishi Electric Thai Auto-Parts does send approximately 100 of its Thai staff to Japan to receive product and assembly training per year. This instruction ranges from a minimum of a few days to a maximum of three months. Still, the training courses rely on Japanese to Thai translation.

Likewise, there is another area for improvement. The company does not conduct any of its research and development in Thailand presently, but this deficiency is to be addressed soon, according to Mr. Kamada. However, Nissan and Honda do have their own R&D centers in Thailand, and this is a trend that META cannot afford to be left behind.

The final question put to Mr. Kamada was, what opportunities will the ASEAN Economic Community (AEC) present to the Thailand operations of Mitsubishi Electric Thai Auto-Parts? He immediately replied that the creation of a large Southeast Asian consumer market and the potential to establish new production bases as well as to expand existing supply chains will result from the launching of the AEC. Larger economies of scale for businesses and industries will emerge in the wake of the AEC, thereby increasing corporate productivity while reducing production costs, leading to a more competitive pricing of goods and services. Additionally, increased economic integration will strengthen business networks across ASEAN, opening the way to more growth and prosperity. Yet, perhaps more importantly, there will be greater uniformity regarding the flow of cross-border trade and investment throughout the ASEAN region and this feature will benefit a company like Mitsubishi Electric Thai Auto-Parts. Still, as Mr. Kamada pointed out, intra-industry competition will be heightened considerably.

Other issues discussed during the interview were META's adjustment to the Bt300 minimum daily wage, the benefits to META of the Japan-Thailand Economic Partnership Agreement (signed in 2007), the recent appreciation of the baht and its effect upon META's business activities, and the appeal of expat life for Japanese in Thailand.

In general, Mr. Kamada communicated a positive viewpoint regarding not only the business climate in Thailand but also the country's economic development. He is confident in the ability of Mitsubishi Electric Thai Auto-Parts to meet challenges found within the automotive industry in Thailand as well as to deal with the pressures of an ever-changing and demanding global consumer market. Furthermore, Mr. Kamada believes that the ongoing partnership META has with the Board of Investment of Thailand will be a key reason for the company's continuing success.